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Dear Investor:
Welcome to Liberty Trading. Whether you have read about us or have been referred by one of our clients, you are about to explore a different kind of futures market philosophy.
As a specialized futures brokerage, we offer this website to you as part of our continuing effort to educate investors in the often overlooked strategy of option writing. With over 80% of all options expiring worthless, we feel that option writing should no longer be the exclusive domain of the professional trader. Our mission is to reduce this often misunderstood strategy into a simple, consistent trading approach for our clients.
If you are trading commodities, or are considering diversifying into commodities, chances are that you're looking for a larger return on your money than many traditional investments can offer. Unfortunately, the way most traders approach the market makes profiting in futures very difficult. When you take a position you are competing against professional fund managers and floor traders who not only have more trading resources available to them, but also in most cases, years and years of experience doing nothing but trading futures as their profession. In addition to going against crack professionals as competition, your timing must be nearly perfect. This is the reason that most traders who "try" commodities end up losing money. The upside to this is that futures and options trading is a zero sum game. For every loser, there is a winner. Therefore, for the estimated 85% of commodity traders who lose money, there are 15% who are making ALL of the money.
There is no question that option writing is a favorite strategy of professional traders. However the investing public is generally discouraged from option writing as many authors, brokers and investment “advisors” deem the strategy "too risky" or "too complicated." Option writing is often downplayed to the individual investor, especially in the commodities world. It is feared, misunderstood, and often shunned. It offers limited profits and unlimited risk of loss. It's slow. It does not offer instant gratification.
Instead, it is much more exciting for advisors, authors and speakers to write, talk or lecture about strategies that can offer "unlimited profits" or "catch the big moves." It sells more books and it sells more trades. This is one reason why you see the dismal percentages mentioned above.
Our investors are after a consistent, steady trading strategy. They are willing to take a conservative approach to an aggressive market. With the majority of the trading public buying options, somebody has to be selling them. More often than not, these will be professional and commercial traders, who sell options month after month, year after year to a trading public eager to buy them for a beggars chance of a big return on a small investment. Which side do you want to be on?
Of course, option writing does carry a certain degree of risk. However, after learning the true risks of option selling, you will notice that some option writing strategies have significantly lower risk than others. You may also learn, as many of our clients have, that using the right combination of these strategies can effectively help you manage these risks while providing a more steady, consistent approach to your portfolio.
I have been trading commodities for clients for over 22 years and I sincerely believe that selling options is one of the few ways that investors can bring consistent success to their portfolios. Our book, our website and our online market commentaries (archived for 1 year) were all created to help investors understand this under-utilized strategy. If after reviewing them, you decide that option selling is right for you, I hope you will consider my firm as your brokerage. My team and I advise investors worldwide on trading their portfolios and manage many of our accounts outright. We would be glad to do the same for you.
If you have an interest in option writing, I encourage you to request one of our free, no obligation, option seller investment packages. Go to the request information pack page or give us a call at 800-346-1949. We are always happy to talk with traders and investors, regardless of your experience level. We never share any information from website registrations with outside firms and we never phone solicit anybody.
If you're ready to start treating your trading like a serious investment instead of an expensive hobby, then we already have something in common.
Enjoy our website.
Sincerely,
James Cordier
President Liberty Trading Group
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